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Wednesday, 10 May 2017

OneCoin - The White Paper

The moment onecoiners were eagerly anticipating was finally yesterday - the release of the White Paper for OneCoin cryptocurrency and its blockchain. It was rumored to happen already during the Sunday's event in Macau, but for some reason it was postponed to Monday.

OneCoin's new CEO Pierre Arens and Kari Wahlroos were giving the presentation about the White Paper.

Arens:"The White Paper is very technical and ten pages long.

The White Paper has been... erm... the audit has been done by a company from Singapore, London and Switzerland. And the company is called DXMarkets.

Even given our blockchain is - top-notch..."

Wahlroos:"It's top-notch, yes. Uniquely designed for OneCoin Ltd."

Arens: "The co-founder and the CEO of the company conducted the audit himself, and wrote the White Paper himself."

- At this point it's obvious that OneCoin doesn't have adequate technical knowledge to prepare a white paper with their own resources.

The presentation ends with this slide:

So OneCoin has now purchased a "licensed blockchain software" from DXMarkets.

Kari Wahlroos swiftly wraps it up by saying: "So there you go ladies and gentlemen! Here's the statement! - We have the blockchain."

But where is the White Paper? I haven't seen it yet.

Unraveling the truth about OneCoin's White Paper

Well, after the company behind the White Paper was revealed, it didn't take long after things started to clear out.

Turns out OneCoin finally managed to find a person and a company willing to provide them a real blockchain. However it should be now very clear even for a half witted that OneCoin has not had any blockchain before. You can read a Twitter interview of the person behind OneCoin's White Paper below:

- So there you go ladies and gentlemen! Here are the statements! There has been no blockchain, just a chain of fools.

Update 15 May

Statement by Marcelo Garcia Casil

After the awkward truth regarding the White Paper was revealed, OneCoin released a statement 10th of May trying to fix the damage done.

The CEO of DXMarkets Marcelo Garcia Casil has signed a statement saying:

"In recent days there has been publicity on the Internet suggesting that I have questioned the existing technological capabilities supporting the OneCoin cryptocurrency. Any such suggestion is false and misrepresents my position. The work my company was commissioned to undertake was designed to provide the company with an analysis and a proposal aiming towards a next generation solution and enhancement for the technology currently underpinning OneCoin’s operations. I refute any allegations that I had not seen the existing system, nor have I questioned the competence of OneCoin’s present arrangements to satisfy the current needs of the cryptocurrency."

- Well, the statement is misleading. I don't think no-one has claimed that he had "questioned the existing technological capabilities supporting the OneCoin cryptocurrency".

When Marcelo Garcia Casil was asked on Twitter to confirm whether OneCoin had a blockchain or not, he replied "I don't know what they had or have". He could not have been clearer about being completely unaware about OneCoin having anything even related to a blockchain while writing the White Paper.

Also he revealed that DXMarkets has now provided OneCoin a blockchain in addition to the White Paper that is based solely on the blockchain by DXMarkets. As he puts it: "I was asked to provide a software and to write a paper about it."

Hence it became very obvious that OneCoin hasn't had a blockchain - like very much suspected since the beginning of the scheme.

5 comments:

I love the fact OneCoin with its alleged blockchain is incapable to write a white paper to explain the functionality of the aforementioned blockchain. True technical experts.There are some more implications that come out from Kari Wahlroos's speech from the stage. I'll put it here too as it was so well formed from Petteri Järvinen:

"So Onecoin now has a blockchain. Fine.What did they have until now? Lies?What has the S-Systems been auditing until now?"

My addition would be:Why did they buy a blockchain from outsider? The whole story for last 2½ years has been that the Onecoin blockchain is so much better than any other technology out there and also capable of handling all the traffic ever needed, "being able to process more transactions than credit card providers" [sic]. By everything they've stated the blockchain does not need a replacement.The Finnish country director said the "sophisticated and advanced" algorithm that is used in blockchain has been "tailor-made by 5 matematicians from India". Should we understand that DXMarkets has invented even better blockchain algorithm? Or did they use the algorithm from the old blockchain?